In a decisive move to enhance national security and foster indigenous production, the Ministry of Defence (MoD) of India has instructed domestic companies to avoid using Chinese components in the manufacturing of drones. This directive reflects mounting concerns over the security risks posed by foreign-made parts, particularly those from China, in equipment supplied to the Indian armed forces.
MoD’s Directive to Industry Bodies
On June 25, the Department of Defence Production (DDP) within the MoD issued a formal directive to prominent industry bodies, including the Federation of Indian Chambers of Commerce and Industry (FICCI), the Associated Chambers of Commerce and Industry of India (Assocham), and the Society of Indian Defence Manufacturers (SIDM), which is affiliated with the Confederation of Indian Industry (CII). The directive urged these organizations to “sensitise” and “caution” their member manufacturers against sourcing components from companies that utilize Chinese parts in the production of drones in India.
Suspension of Drone Orders
As a result of the MoD’s scrutiny, a significant order for 200 logistic drones from Dhaksha Unmanned Systems Pvt. Ltd, a Chennai-based company, has been suspended. This action indicates a broader investigation into all firms supplying drones to the Indian armed forces, with a focus on ensuring that no Chinese components are used.
Specific Companies Named
The DDP’s letter specifically named three companies: Dhaksha Unmanned Systems Pvt. Ltd, Sky Industries in Gandhinagar, and Garuda Aerospace Pvt. Ltd. These companies have been allegedly involved in selling or supplying unmanned aerial vehicles (UAVs) or drones that incorporate Chinese components. The letter stated, “It has come to the notice of the Department of Defence Production, Ministry of Defence, that Dhaksha Unmanned Systems Pvt. Ltd; Sky Industries, Gandhinagar; and Garuda Aerospace Pvt. Ltd are reportedly engaged in selling/supply of UAVs/drones to Indian Defence Forces which include assembly and integration of Chinese components.”
Emphasis on Vigilance
The letter also highlighted the need for heightened vigilance among defense manufacturers. The DDP stressed the importance of exercising caution while procuring defense items, particularly from the named companies, and advised industry associations to ensure that their members remain vigilant when sourcing from other players in the field.
Response from Dhaksha Unmanned Systems
In response to the MoD’s actions, Dhaksha Unmanned Systems Pvt. Ltd released a statement denying the use of Chinese components in their drones. A spokesperson for the company asserted, “We would like to clarify that Dhaksha Unmanned Systems does not use any Chinese components in its defence drones, and any such claims are untrue and unsubstantiated. Dhaksha Unmanned Systems has also reiterated this fact to the Defence Ministry officials.”
The company emphasized its commitment to adhering to government directives and maintaining high-quality standards. “As part of the process, the company had submitted all the information and documents related to the sourcing of its components to the Defence Ministry and has successfully submitted documents towards completion of the quality and process audit. Dhaksha Unmanned Systems remains steadfast in its commitment to manufacture ‘Make in India’ drones,” the spokesperson added.
Important Points to Note
MoD’s Directive: The Ministry of Defence has directed domestic companies to avoid using Chinese components in drones, emphasizing the need for security and self-reliance.Industry Scrutiny: The directive has led to the suspension of a significant drone order and a broader investigation into drone suppliers.Named Companies: Dhaksha Unmanned Systems Pvt. Ltd, Sky Industries, and Garuda Aerospace Pvt. Ltd were named in the directive for allegedly using Chinese components.Company Response: Dhaksha Unmanned Systems denied the allegations, affirming their commitment to producing drones without Chinese parts and adhering to “Make in India” standards.
The MoD’s directive aligns with the Indian government’s broader push for self-reliance in defense production, particularly under the “Make in India” initiative. The use of foreign components, especially from countries like China, could compromise this goal and pose significant security risks, making the MoD’s directive a critical step in safeguarding national interests.